1-1 By: Bernsen S.B. No. 1640 1-2 (In the Senate - Filed March 9, 2001; March 14, 2001, read 1-3 first time and referred to Committee on Jurisprudence; 1-4 April 10, 2001, reported favorably by the following vote: Yeas 7, 1-5 Nays 0; April 10, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to a provision for the payment or transfer of a person's 1-9 interest in a mutual fund account on the person's death. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subsection (a), Section 450, Texas Probate Code, 1-12 is amended to read as follows: 1-13 (a) Any of the following provisions in an insurance policy, 1-14 contract of employment, bond, mortgage, promissory note, deposit 1-15 agreement, employees' trust, retirement account, deferred 1-16 compensation arrangement, custodial agreement, pension plan, trust 1-17 agreement, conveyance of real or personal property, securities, 1-18 accounts with financial institutions as defined in Part 1 of this 1-19 chapter, mutual fund account, or any other written instrument 1-20 effective as a contract, gift, conveyance, or trust is deemed to be 1-21 nontestamentary, and this code does not invalidate the instrument 1-22 or any provision: 1-23 (1) that money or other benefits theretofore due to, 1-24 controlled, or owned by a decedent shall be paid after his death to 1-25 a person designated by the decedent in either the instrument or a 1-26 separate writing, including a will, executed at the same time as 1-27 the instrument or subsequently; 1-28 (2) that any money due or to become due under the 1-29 instrument shall cease to be payable in event of the death of the 1-30 promisee or the promissor before payment or demand; or 1-31 (3) that any property which is the subject of the 1-32 instrument shall pass to a person designated by the decedent in 1-33 either the instrument or a separate writing, including a will, 1-34 executed at the same time as the instrument or subsequently. 1-35 SECTION 2. The change in law made by this Act to Subsection 1-36 (a), Section 450, Texas Probate Code, applies to a provision for 1-37 the payment or transfer of a person's interest in a mutual fund 1-38 account on the person's death, regardless of when the provision was 1-39 executed or the account was established. 1-40 SECTION 3. This Act takes effect immediately if it receives 1-41 a vote of two-thirds of all the members elected to each house, as 1-42 provided by Section 39, Article III, Texas Constitution. If this 1-43 Act does not receive the vote necessary for immediate effect, this 1-44 Act takes effect September 1, 2001. 1-45 * * * * *